Legislative Committee Approves Higher Education Report

This morning the Washington Joint Legislative Audit & Review Committee (JLARC) adopted the final report, Transparency in Higher Education Data.

In 2009, the Legislature asked JLARC to explore the feasibility of linking expenditure, revenue, and performance information for the state’s public four-year institutions.

The report found that in general comparable revenue, expenditure and performance information is currently available for each of the six public four-year institutions.

The report identifies some gaps and offers suggestions for improvements to fiscal data collected in the state accounting system and performance data collected by the Higher Education Coordinating Board.

Mike Reilly, Executive Director for the Council of Presidents, testified to the value of considering the adoption and implementation of  the NGA initiative Compete to Complete. Compete to Complete  offers the state the opportunity to consolidate measures for higher education into a single framework.  The University of Washington also testified.

The final report was unanimously approved.

State Legislators Travel to Olympia for Assembly Days

The first full week in December marks for many the beginning of the legislative session season.

Washington’s representatives and senators will travel to Olympia to discuss the lastest budget figures, proposed policy frameworks for the 2011 session, and to finalize votes for leadership.

Several work sessions and public hearings are scheduled on critical issues that impact higher education. To learn more follow the links below.

This week the focus of the appropriations committees (i.e. Senate Ways & Means and House Ways & Means will be a review of the Governor’s across-the-board reductions, the November revenue and economic forecast, the work of the Governor’s Committee on Transforming Washington’s Budget, and the outlook for the current fiscal year and the 2011-13 biennium.

In addition, the higher education related committees (i.e. House Higher Education and House Education Appropriations, Senate Higher Education & Workforce Development) plans to receive updates and learn the latest regarding the 2011-13 budget outlook, the HECB Master Plan, and teacher education.

Special Session Under Discussion

A potential special session in December is one of many topics under consideration by Governor Gregoire and legislative leadership.

Gregoire is scheduled to meet with Demoratic and Republican leaders on Wednesday to discuss options for cutting the budget. She had asked leadership for ideas for cutting the budget by Monday but several asked for additional time.

A special session in December would address the state’s need to cut more than $1 billion out of this year’s budget and about $5.7 billion from the next two-year budget.  The more time that passes without a resolution to the budget the greater the impact.

Last week Governor Gregoire identified options to reduce the state’s budget. Many of the items she proposed would require legislative action by December 12.

The Governor wants an agreement on an agenda before calling a special session to avoid lengthy delibrations.

Legislative leadership has expressed concerns regarding the elimination of programs and services without first trying to reduce the costs of these programs and services. In addition, there is some preference for a full supplemental budget versus quick program cuts.

Three Legislative Races Will Require Recount

It appears that the full membership of the 2011-13 Washington Legislature will not be known until early December.

Three legislative races appear to be headed for a recount.

  • Legislative District 25 – Rep. Morrell trailed Republican challenger Hans Zeiger by 47 votes as of yesterday.
  • Legislative District 41 – Sen. Gordon trailed Republican challenger Steve Litzow by 194 votes.
  • Legislative District 42 – Rep. Linville trailed challenger Vincent Buys by 154 votes.

The race for the legislative seat in District 25 will require a hand recount, while the other two races will require a machine recount.

Governor Releases Series of Proposals to Balance the Current Biennial Budget

Today Governor Gregoire released to legislative leadership a series of proposals to solve the current fiscal year’s deficit of $1.14 billion. 

The proposals include across-the-boards cuts already imposed but does not include the recent decision to reopen collective bargaining agreements.

The proposals listed include the estimated savings, effective date of the change needed to secure the savings, notice requirements to meet the effective date and whether legislative action is needed

Among the proposals are the across-the-board cuts taken by institutions of higher education, including Evergreen’s reduction of $800,000. The reduction does not reflect the full 6.3% initially required but is closer to 4.5% to reflect the federal maintenance effort requirement.

In addition, the proposal includes other higher education related measures including:

  • Delaying State Need Grant funding to FY2012 
  • Requirement to make whole shortfalls in the Opportunity Pathways Account and Education Legacy Account

Many of the proposals would require legislative action by Dec. 12, but it’s not clear yet if the governor will call a special session. The Governor wants to make sure legislative leaders agree on a solution before deciding whether to call lawmakers back.

She has given lawmakers until Monday to submit their own budget ideas.

Washington House Leadership Elected

On Friday, the Washington House of Representatives elected the leadership team for the 2011-13 legislative cycle.

Frank Chopp was unanimously elected as Speaker-designate for 2011-13.  In addition, the House elected Rep. Sullivan as Majority Leader, Rep. Morrell as Caucus Chair, and Rep. Van De Wege as Majority Whip.

On the Republican side, Rep. DeBolt was re-elected as House minority leader.

The rest of the House leadership team will be elected December 8.

State Revenue Declines: Another $1.2 Billion Gap

Washington’s state budget took a large hit this morning. The November Economic & Revenue Forecast, released today, shows an additional $1.2 billion decline in revenue between now and 2013.

The Forecast will require Washington to further reduce the budget for the current fiscal year by $385 million. This is in addition to the $520 million across-the-board cuts the Governor ordered earlier this fall.

State Chief Economist Arun Raha stated that the additional decline in state revenues for the current biennium is due to the repeal of the soda, candy, and bottle water tax in November and weaker future revenue growth than was assumed in September.

According to Raha, credit to small business remains tight, recovery in the commercial construction sector is not expected until 2012, and single-family housing remains weak. In addition though some signs show positive movement with regard to multifamily housing and auto sales, neither can be assumed to be sustainable or substantial.

In addition, the budget shortfall for 2011-13 increased by $800 million, increasing the total budget gap for the upcoming biennium to $5.7 billion. The increase in the 2011-13 biennium is also related to the reduction in revenue as a result of the repeal of the candy, bottled water, and soda tax combined with a weaker outlook for revenue growth.

The forecast caught many by surprise, including the Governor and policymakers since revenues had been closely tracking to the September forecast.

The Governor has stated that further across-the-board cuts are not feasible.

“I have been working with legislative leadership in both parties to collect ideas on how to address our current shortfall. This forecast has added even more urgency to those discussions, and I’ve asked them to provide their options to me by November 29. Quite frankly we can’t cut any deeper without ending significant programs. Extremely difficult choices must be made, and given this sharp revenue decline, they must be made now,” Gregoire said.

The only positive note in all of this. According to Raha, Washington’s strong aerospace and software industries combined with important exports to Pacific Rim nations may mean that Washington could perform better than other U.S. states in the economic recovery.

Governor Gregoire Elected Chair of National Governors Association

Governor Gregoire was elected to chair the National Governor Association, a bipartisan organization, through July 2011.

Gregoire is only the second woman to chair the association, and replaces W.V. Gov. Joe Manchin, who was elected to the U.S. Senate, according to an NGA press release.

The governor announced she will continue Manchin’s “Complete to Compete” initiative, which seeks to increase the number of American students who complete college degrees and improve the productivity of U.S. high education institutions.

Leadership Emerging in Washington Senate

Leadership in the Washington Senate is emerging. This week the Senate Caucus Committee on Committees made several recommendations for leadership positions and committee chairs to the full Senate.

Among the recommendations is Senator Ed Murray for Chair of Ways & Means and Senator Margarita Prentice as President Pro Tempore.

In addition, several other senators were also recommended for new positions in the new Legislature.

  • Sen. Karen Fraser, who represents The Evergreen State College, as Chair of the Senate Democratic Caucus.
  • Sen. Derek Kilmer as Vice Chair of Ways & Means, which would put him in charge of the Capital budget for the Senate.
  • Sen. Rodney Tom, Chair of the Higher Education and Workforce Committee
  • Sen. Craig Pridemore, Chair of the Government Operations, Tribal Relations, and Elections Committee
  • Sen. Kevin Ranker, Chair of Natural Resources and Marine Waters Committee
  • Sen. Steve Hobbs, Chair of Financial Institutions, Housing and Insurance Committee
  • Sen. Scott, White, Vice Chair of Transportation

The recommendations by the Committee still must be approved by the 27-member Senate Democratic Caucus when it meets in Olympia in early December.

Both chambers in the Washington House plan reorganizations on Friday.

Long-Time Chair of Washington Budget Committee Expected to Leave Position

Things they are a changing in Washington. Long-time serving Chair of the Senate Ways & Means Committee, Senator  Margarita Prentice, is expected to leave her current position to become president pro tempore of the Senate.

The president pro tempore is the backup to the Senate president, Lt. Gov. Brad Owen. Owen presides over the Senate, and in his absence the pro-tem takes the gavel. Former state Sen. Rosa Franklin held the post before she retired last session.

Speculation suggests that Senator Ed Murray will likely take her position as Chair of the Senate appropriations committee.

The Senate Democratic caucus Committee on Committees — which decides committee assignments — was scheduled to meet Monday. Their recommendations will go to the caucus as a whole for consideration in December.